Technology @ Knowledge Zone


Shared Service Strategy

by Narendar Lokwani *

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Part - VI

  • Staff Redeployment: Redeployment of staff to a centrally located Shared Service Center has its costs involved which might be considerable in case of a firm having their commercial operations distributed across multiple manufacturing and distribution centers.

  • Initial Operational Efficiency Loss: During the Initial change period, when staff is wholly retrained in new processes, they might take some time to adjust to new methodologies due to which Operational Efficiency might suffer.

  • Technology Investment: Considerable Initial Investments have to be made in hardware, software and networking components to implement the complete new system which connects the Shared Services with all the individual units of the firm This is a huge Initial investment, although might incur regular expenditures like License Fees and IT Staff Cost.



Characteristics and benefits derived from shared services strategy vis-à-vis other models

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* Contributed by -
Narendar Lokwani,
II Year, PGSM,
IIM Bangalore,
Pre-Sales and Mktg Team, Aditi Technologies.